Budget Update Tri-County Technical College Faculty /Staff Meeting December 3, 2008

O VERVIEW Historical Funding of Technical College System Comparison of Enrollment, Tuition and State Funding from 2000 to 2008 Funding Allocation and Trend Comparison to Peer Group Budget Adjustments to Date Future Outlook

T ECHNICAL C OLLEGE F UNDING Theory for Funding  State Appropriations – Fund Salaries State Funding currently covers only 44% of our salaries  Local Funds – Fund Facilities  Tuition and Fees – Fund Operations

C URRENTLY ,623 $3,162 $153,089,780 39,036 $1,290 $171,310,188 Average Tuition and Fees: FTE Enrollment: State Appropriations: SC Technical College System

S TUDENT FTE AND S TATE F UNDING,

B UDGET I MPACT ON O UR P EER G ROUP Medium Colleges General Funds Federal Funds Other Funds Total Funds 14.4% Reduction to General Funds % Reduction to Total Funds Aiken Technical College $5,486,604 $516,000 $16,822,069 $22,824,673 $797, % Central Carolina Technical College $6,100,716 $919,240 $16,529,816 $23,549,772 $886, % Florence-Darlington Technical College $9,059,894 $2,198,397 $25,814,576 $37,072,867 $1,316, % Horry-Georgetown Technical College $10,395,557 $1,663,835 $23,281,691 $35,341,083 $1,510, % Orangeburg-Calhoun Technical College $5,790,563 $919,396 $14,855,624 $21,565,583 $841, % Piedmont Technical College $9,861,497 $3,331,201 $23,436,121 $36,628,819 $1,433, % Spartanburg Community College $9,381,824 $933,449 $26,556,331 $36,871,604 $1,363, % Tri-County Technical College $9,711,175$1,030,241$25,276,869$36,018,285$1,411, % York Technical College $8,579,932 $4,253,969 $17,873,689 $30,707,590 $1,246, % Average $8,263,085$1,751,748$21,160,754$31,175,586$1,200, % Funds include Unrestricted and some Restricted Funds

T RI -C OUNTY T ECHNICAL C OLLEGE H ISTORICAL F UNDING FTE Enrollment $15,336,000$3,810, State Funding Tuition & Fees $9,670,000$8,109,000* FY2000 FY2009 * State Funding Adjusted for 16.5% projected reduction.

O UR C HALLENGE … State Funding was projected to be $9,711,000 for FY09 Our Budget Challenge to date is a 16.5% reduction in State Funding or $1,602,000 $1,602,000 represents 5% of our Unrestricted Operating Budget. We can get there…but we have to be smart and diligent!

2 Year and 4 Year Colleges & Universities Reducing travel costs, contractual services, repairs, dues, memberships Defer and Reduce Capital Spending Hiring Freezes, reduction in force, layoffs, retirements, attrition, furloughs Cutting operating hours Restructuring/Cancelling programs W E ’ RE N OT IN T HIS A LONE. W HAT ARE O THER C OLLEGES D OING ? We have to be very calculated with our actions so as not to jeopardize our mission.

O UR B UDGET A DJUSTMENTS T O D ATE … Initial Budget Reduction built into the Plan $293,300 Increased Revenue from Enrollment $400,000 Operating Expenses $328,300 Hold on Replacing Open Perm. Positions$485,000 Reductions-to-Date$1,506,600 Our Challenge$1,602,000

W HERE W E A RE T O D ATE ? Budget Adjustments To Date include: Fall Revenue from Enrollment$400,000 Previous Reduction Built into The Plan$293,300 Hold on Refilling Permanent Positions$485,000 Reduce Temporary Employment $88,000 Cancel Travel to SCTEA $10,000 Divisional Operating Expenses Academic Affairs $50,000 Business Affairs $90,400 Economic Development/CE $20,600 Institutional Advancement $26,500 Presidents Office $16,300 Student Affairs $26,500 Total Adjustments$1,506,600

O UR 3 Y EAR S PENDING T REND ……W E S TILL H AVE W ORK T O D O. Personnel $3,789,000$2,767,000 $22,169,000$17,292,000 Fixed Charges Contractual Services $980,000$1,194,000 FY2006 Actual FY2009 Budget Supplies Travel $343,000$1,078,000* $210,000$220,000 * Fixed charges include $630k for the Anderson Campus Lease

O UR G UIDING P RINCIPLES Focus on our Mission Keep students in the forefront Protect employees jobs as much as possible Provide essential services Aggressively challenge everything we do, looking for improvements and savings Take the opportunity to better position ourselves for the future Recognize the extraordinary times and pull together for the good of the College Recognize that we each have a role to play

W HAT ’ S A HEAD OF U S … We are likely to have more cuts for FY2010.  We anticipate another 2% before January, 2009  Could see another cut after January 1, 2009  Total of at least $1.8million for FY09  Fiscal Year 2010, we anticipate a cut of $2.5million  While this is a significant amount of money, it  represents only 7.7% of our Unrestricted Budget We can do this without compromising our core mission.

I S T HERE A NYTHING “O FF L IMITS ?” Like all colleges across South Carolina, we will not increase tuition in the spring. Next Fall is yet to be decided. We will not dip into our cash contingency Since reductions are permanent we cannot permanently reduce our operating contingency

W HERE D O W E G O F ROM H ERE … We’ll have to ensure that our reductions are recurring We’ll all need to contribute. We all own the issue and the solution We’ll need to be aggressive in all areas We will be very calculated in our decision process We’ll need your ideas and suggestions I anticipate setting up several small groups to brainstorm ideas in regard to revenue enhancement and expense reduction We’ll get there through hard work, compromise and teamwork!

F UTURE P OSSIBILITIES Reducing Tuition Remission & Fee Waivers Developing Differential Tuition Rates Implementing Supply and Equipment Fees by Program Health Science - $62 per semester I & ET - $170 per semester A & S - $10 per semester B & PS - $23 per semester Changing Printing Practices & Implementing Charges Developing a Rigorous Energy Management Plan Implementing Travel Restrictions Evening Coverage – shared responsibilities Aligning services between GTC and rest of College Reviewing and Reducing Memberships Assessing Overload Pay Implementing Summer School Sustainability

F UTURE P OSSIBILITIES Implementing a Furlough - $65,000 per day Reassignments of Duties Outsourcing Services RIP VSP RIF